Safe haven currencies such as the USD and the JPY have been declining for their own reasons, with the Yen falling as the Bank of Japan holds the polic
Safe haven currencies such as the USD and the JPY have been declining for their own reasons, with the Yen falling as the Bank of Japan holds the policy unchanged, while the FED is preparing to stop rate hikes and reverse to rate cuts later this year, as the US economy slows.
Although today, safe havens are attracting demand once again. The USD has been experiencing bullish momentum as stocks and bond yields slip lower which is contradictory actually. This is leading to a risk-off mood, which is causing the USD to move higher in both trading sessions today. For example, EUR/USD fell from 1.1050 to 1.0960s so far. There were large option expiries to consider at around 1.10 but they didn’t help this pair slide lower.
GBP/USD is also falling as sellers start to take back near-term control, with the pair dropping from 1.2500 to 1.2380s. Meanwhile, the AUD/USD pair is the laggard as risk trades are on the defensive, with AUD/USD down 0.7% to 0.6620s at the moment.
Equities have been sluggish throughout, with European indices opening lower but consolidating losses and reversing higher eventually, ending up on the day. US equities on the other hand, opened with a bearish gap and continue to slide lower. Treasury yields are also feeling heavy and have remained lower since Asia trading.
Safe havens on the other hand have been bullish, with the US dollar pushing higher all day, apart from GOLD which has been showing some resilience in the last few hours since the US open, after falling $20 earlier. XAU/USD was contesting the daily support at around $1,981, which has been the case since last week but is finding some bids now. Additionally, crude Oil has slipped back by nearly 3% towards $76.50 but is also finding some bids now.
USD/JPY turned bearish, which shows that the JPY is the strongest currency today, as it is gaining against the USD, the second strongest. This pair fell to 133.70s, but has retraced higher recently and we just opened a sell forex signal here.
USD/JPY
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